LET PEOPLE BE REMINDED, that Richard Nixon had once tried price controls.
On Aug. 15, 1971, in a nationally televised address, Nixon announced, “I am today ordering a freeze on all prices and wages throughout the United States.” After a 90-day freeze, increases would have to be approved by a “Pay Board” and a “Price Commission,” with an eye toward eventually lifting controls — conveniently, after the 1972 election. Even though his speech pre-empted the popular Western Bonanza, the people loved it, too — 75 percent backed the plan in polls.
Economist Milton Friedman correctly predicted, however, Nixon’s gambit ended “in utter failure and the emergence into the open of the suppressed inflation.” It was obvious that price controls didn’t work: “Ranchers stopped shipping their cattle to the market, farmers drowned their chickens, and consumers emptied the shelves of supermarkets.”
Scarcity AND inflation running amok.
....I believe it was the late, great Rush Limbaugh who coined, or at least used it widely, the term “low information voter” crowd...I am listening to the Pantsuit Princess even now...sounds great..!! wonderful!! go after those greedy, selfish corporations, especially the grocery firms, etc. for their “price gouging” or as she just put it, “gauging”....it’s gonna be a long, and painful, campaign season....
“... the people loved it, too — 75 percent backed the plan in polls.”.
Yup, and the “people” will love it again because they don’t understand economics and sure as heck don’t remember history.
Next proposal will be nationalization of the food industry.
I’m old enough to remember that and Ford’s stupid Whip Inflation Now buttons.
L
Nixon’s policy was an utter failure because all a food or other company had to do was claim their products were “new and improved” which weren’t affected by price freezes.
“Reclassification of job titles and duties” allowed wage increases.
I remember Rush Limbaugh saying once he worked in a grocery store as a teen during Nixon’s price controls - the owner had a list of what was/wasn’t price controlled and told Rush to change the names of cuts of meat from price controlled to non-price controlled.
I actually remember Nixon breaking into regularly scheduled programming to make that announcement. Wish I could remember what show we were watching.